“A company’s stock price reflects investors’ collective view of how much money that company will make in the years ahead. Generally speaking, when it trades at a high price-to-earnings ratio, investors expect rapid profit growth,” Ashraf Eassa writes for The Motley Fool. “Conversely, when a company trades at a low P/E ratio, it often means that investors don’t expect that company to enjoy rapid earnings growth.”

“Apple, which is arguably the world’s most successful technology company, currently trades at about 15 times expected fiscal year 2018 earnings,” Eassa writes. “By comparison, tech giants Alphabet and Microsoft trade at roughly 32 times and 25 times projected earnings for the coming year.”

“Unfortunately, analysts expect Apple’s operating profit growth to slow to a snail’s pace after the current fiscal year,” Eassa writes. “I suspect that analysts are cautious about the potential for iPhone growth after the super cycle that Apple is likely to enjoy during fiscal year 2018.”

Read more in the full article here.

MacDailyNews Take: How could Apple ever exceed the rather amazing iPhone X?

Say hello to the 6.5-inch “iPhone X Plus” next year!

[Thanks to MacDailyNews Readers “Fred Mertz” and “Arline M.” for the heads up.]